Converting sales is your highest priority as a small business. No sales. No business. So when your offer isn’t converting well, or at all, you need to figure out why… stat.
When a small business owner comes to EFG with an offer that is under-converting, here are the 3 surprising “places” we look first:
One of the biggest mistakes we see business owners make is forgetting that your marketing is about “them” and not you. But this rule doesn’t end with emphasizing benefits over features in your marketing conversation. It must also be top-of-mind as you set up the structure of your offers, or you risk creating “barriers to entry.”
Case in point: “Tim” has a train-the-trainer revenue model, and one of his offers is a comprehensive 12-month training program. Tim’s credibility within his industry is high. However, the program structure that has been created requires participants to attend a 3-day, in-person, training once a month for 12 months. For people local to Tim, that is not a huge deal, but for anyone out of town, that’s 12 airplane tickets, 48 nights in a hotel, 144 meals out… you get the picture.
So while what Tim charges for the program is reasonable, the actual cost of participation includes more than $10,000 on average just for travel and accommodations not to mention the disruption caused by traveling once a month for a year! Tim’s marketing must now be able to create a perceived value in the mind of a prospect 5 – 6 times what he charges for the program in order to effectively close a sale. Shew!
2) The Offer is Needed but not Wanted
This one is an ouch; an all too common ouch for entrepreneurs building “helping businesses.” You must be very careful to not let your desire to help become just another version of co-dependency. The purpose of your business isn’t to save the world (or anyone in it), it’s to be profitable.
Just this weekend I was approached by someone who had an amazing concept “that yoga teachers really need,” OK… but then the kicker, “…but, they don’t know they need it.”
“Stop right there!” I said. “Don’t go down that dead end road.” And I say the same to you. That road will break your heart and your bank account. With few exceptions, such as tax filing services, cardiac surgeons and mortuaries, what your business offers should be wanted as much or more than it is needed.
3) KLT Factor that is Low or Non-Existent
KLT stand for: Know – Like – Trust, and in today’s savvy marketplace, it’s critical for conversion. People aren’t going to believe you just because you say it is so, you have to demonstrate that you are in fact a credible, trustworthy expert, capable of delivering on your promises.
A few ways to raise your trustworthiness in the mind of your prospects are:
- Publishing high-value content
- Social proof – testimonials and similar
- Sharing case studies
- Showing up as an “expert” at events where your market is found
- Actively engaging with other leaders in your industry